Trump:- Looking good (Job numbers)

[GRG55]

Re: Trump:- Looking good (Job numbers)

wasn't the goose that laid golden eggs dissected in the end?

and to add to your point- it's also interesting that the canadian gov't thinks it's preferable to ship oil in railroad cars rather than pipelines.

Another example, this week, of the continued rapid decline of investment in the Canadian hydrocarbon sector. The now overtly hostile political environment in Canada will curtail this sector permanently. Governments have no viable ideas of how to replace the significant revenue decline that is resulting. And Bill Morneau, the Federal Finance Minister, is utterly clueless. Canada is now simply uncompetitive as far as attracting investment capital. Not just in oil & gas, where the problem has become acute, but across almost every other industrial sector of importance to the country (with the possible exception of the "flipping-condos-to-the-Chinese").

Chevron said its decisions are part of its global portfolio optimization effort focused on improving returns and driving value.

"Although Kitimat LNG is a globally competitive LNG project, the strength of Chevron Corp.'s global portfolio of investment opportunities is such that the Kitimat LNG Project will not be funded by Chevron and may be of higher value to another company," Chevron said in a statement.

https://www.ctvnews.ca/business/chev...stry-1.4725118

Chevron move to exit Kitimat LNG project a dash of 'cold water' for gas industry
Last Updated Wednesday, December 11, 2019 12:12PM EST

Chevron's move is the latest in a string of setbacks for B.C.'s nascent liquefied natural gas industry which once boasted nearly 20 proposed projects with the implied promise of a new higher-priced export market in Asia for Western Canada's abundant natural gas resources.

Chevron is not the first company to want out of Kitimat LNG -- it bought its 50 per cent stake from Calgary-based Encana Corp. and Houston-based EOG Resources, Inc., in December 2012.

In the same transaction, Houston-based producer Apache Corp. raised its stake in Kitimat LNG from 40 per cent to 50 per cent. But two years later, under pressure from activist investors, it sold that stake to Australian Woodside Petroleum Ltd., which remains Chevron's partner.

Malaysian energy giant Petronas cancelled its Pacific NorthWest LNG project in 2017 and later joined the Royal Dutch Shell-led $40-billion LNG Canada project, which remains the only project under construction after being green-lighted in 2018...

[Milton Kuo]

Re: Trump:- Looking good (Job numbers)

Another example, this week, of the continued rapid decline of investment in the Canadian hydrocarbon sector.

Chevron said its decisions are part of its global portfolio optimization effort focused on improving returns and driving value.

"Although Kitimat LNG is a globally competitive LNG project, the strength of Chevron Corp.'s global portfolio of investment opportunities is such that the Kitimat LNG Project will not be funded by Chevron and may be of higher value to another company," Chevron said in a statement.

In the case of Chevron's exit from Kitimat, is this truly due to Canadian taxes and regulation or is it more because of the very low price of natural gas, currently at ~$2.30/MM BTU, with seemingly no end in sight of such low prices? My understanding is that the shale fields in the U.S. produce a lot of natural gas from crude oil E&P and the best shale fields have very low costs of crude oil production ($15/bbl per Bloomberg and I've been told it's even lower than that).

Exxon Aims for $15-a-Barrel Costs in Giant Permian Operation

Exxon Mobil Corp. plans to reduce the cost of pumping oil in the Permian to about $15 a barrel, a level only seen in the giant oil fields of the Middle East.

Development, operating and land acquisition costs will be “in and around $15 a barrel,”

[GRG55]

Re: Trump:- Looking good (Job numbers)

In the case of Chevron's exit from Kitimat, is this truly due to Canadian taxes and regulation or is it more because of the very low price of natural gas, currently at ~$2.30/MM BTU, with seemingly no end in sight of such low prices? My understanding is that the shale fields in the U.S. produce a lot of natural gas from crude oil E&P and the best shale fields have very low costs of crude oil production ($15/bbl per Bloomberg and I've been told it's even lower than that).

Exxon Aims for $15-a-Barrel Costs in Giant Permian Operation

Exxon Mobil Corp. plans to reduce the cost of pumping oil in the Permian to about $15 a barrel, a level only seen in the giant oil fields of the Middle East.

Development, operating and land acquisition costs will be “in and around $15 a barrel,”

The global blue-water LNG business is essentially an arbitrage between low priced natural gas at the sources and higher priced natural gas at the delivery points.

LNG export projects benefit from and need a low natural gas input price. The cheap associated gas from shale oil is part of what is driving the massive LNG export projects being developed on the USA Gulf coast. The price of natural gas at Station 2 in NE BC is even lower, far lower, than US Henry Hub.

The other advantages the north coast of Canada has over US LNG is it does not have to transit the Panama Canal to access the Pacific Basin/Asia markets, and it is days less round-trip ship time to move it to the North Asia markets of Japan, Korea, etc.

Those advantages, along with the depressed Canadian $ exchange rate, are still not enough to overcome the costs, delays and uncertainties being imposed by our governments in Canada.